Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-05-18
SOME ANCIENT HISTORY
essAyEp BY A WITNESS BEFORE THE
PACIFIC COMMISSION.

He Recites the Story of Credit Mobilier-
Jay Could Has a Lapse of Memory, But
Receivers Under Pointed Questioning and
Gives a Few Facts Relating to the Union
Pacific Deals.
NEW YORK, May 1S.-The first witness ex-
aminei by the Pacific railroad commission
Tuesday was the well known broker, John
Pondir. He was examined as to what he knew
about the affairs of the Union Pacific and his
connection with the road He went over the
old story of the Credit Mohilier, in which the
names of Fisk, Gould, Oakes and Oliver An,es
and Alley figured prominently. He took DC
casion TO vindicate Cakes Ames saying that
lie was an honorable man, and declared that
death was hastened by the infamous stories
told concerning him He attempted to show
that Mr. Blaine was connected with the Credit
Mobilier. He said that when Tom Scott was
elected president of the Union Pacific, Scott
told witness that he had eighty two bonds
which belonged to Mr. Blaine, which the I'm
ION Pacific would have To pay.
Mr. Jay Gould was next called to the wit
ness stand He testified that he had been con-
ne,fei With railroads for the past twenty-five
years. His first connection with the Union
Pacific was in 1873 In the early part of that
year he met Horace F. Clark in Chicago. Mr.
Clark spoke SO highly of the stock that witness
sent an order to New York to buy it at IS and
scale down. Continuing witness said:
''Mr Clark WIS sick and about to die, and his
stock was sold, my orders catching il The stock
| began to go down and was anxious. | asked
I
price. had then gone down to IS He said that it
bad an immense floating debt and slooo0.ooo in
bonds due found that Sydney Dillon and Oil
| yer Am'ss could he relied on among the directors
| and We went 10 work to fund this coating debt
| had l1f.nn shares of the stock at the time |
became 81 member of the board of directors in
| 1874. ard was also member OF the executive
| committee As we improved the property the
| stock went up. went over the road twice year
while director had no interest in the suit Of
| James Fisk. Jr., against the Union Pacific
| think David Dudley Field was one Of Mr. Fisk's
| lawyers He has acted for me Ideny emphaticay
| that had any connection with the Union Pacific
before lS53
Witness first became interested in Kansas
| Pacific in 1873; he could recall nothing of the
proposed consolidation: remembered nothing
| Of consultation with Thomas A Scott in
| Philadelphia concerning the proposed consoli-
dation in 1873; did not remember of any
action looking to union of the interests be
| tween Kansas Pacific and Colorado Central
| in that wear.
BOAT you know that there was an agreement in
| 1873 for union Of the Kansas Pacific and Colo
| radr Central whereby the stock of the Kansas Pa
cific was to be increased S20Go1,0D?''
Now that YOU recall it, there was but il nevel
| was consHmmatt.d We were trying TO force pr,
| rata with the Kansas Pacific, and this o
| the attempts | think | must have seen Col
Scott in this connection. for the st Louis people
| had a great deal of confidence in him
Witness said the branch connecting the
| Union Pacific and Colorado Central was built
before ISIS, but he dld not remember exactly
when: the huiiding of this line lessened til.
| earnings of the Denver Pacific. in 1873 ht
| owned 40 0D0 shares of Union Pacific; the en-
tire issue was 1000; his books containing
his transactions in Union Pacific were at tn,
service of the commission; he recalled tina
there was a pooling agreement in 1873; didn'
know what ne paid for the 81, IA, 700 stamps
income bnudS. they were entered at 50. but h
probably pali more